Hello, I hope you're well. I allocate my monthly investments as follows: 7.5k in Quant Tax Fund, 5k in DSP ELSS Fund, 5k in DSP Nifty 50 Equal Weight Index Fund, 1.5k in Navi Nifty India Manufacturing Index Fund, 2k in Axis Gold Fund Direct Plan Growth, 1k in HDFC Gold Fund Direct Growth, 2k in Nippon Indian Silver ETF, 2k in Quant Multi Asset Fund Growth Option Direct Plan, 2k in Nippon India Multi Asset Fund, 3k in Canara Robeco Bluechip Equity Fund, 2k in Nippon India Large Cap Fund, 5k in Quant Small Cap Fund, 5k in Nippon Small Cap, 3k in Axis Small Cap, 5k in HDFC Multi Cap, 2k in Tata Digital India, 3k in Axis Growth Opportunities Fund, 2k in Nippon Flexi Cap, 2k in Parag Parik Flexi Cap, 2k in Quant Mid Cap, 1k in Edelweiss Aggressive Hybrid, and 2k in DSP Natural Resources and New Energy. How are these companies, and is my fund allocation correct? Also, could you provide an estimate of the corpus I might accumulate in the next 5 years with a monthly SIP of 66k?

Ans: Hello Mriganka. Your portfolio appears to be over-diversified. There is a proportion in both sector and thematic funds. Hence, I would suggest you to reconcise and reshuffle your portfolio. Also, reconsider Edelweiss mid-cap and Tata Small Cap Fund. With 31k monthly sip you may achieve a corpus of 4.08 cr in the next 20 years with 14% CAGR.

Ans: investing Rs. 41,000 monthly is a great sign of discipline! It seems you're investing in several mutual funds, but let's see how we can optimize your portfolio.

Current Portfolio Analysis:

Number of Funds: Having 11 funds might be too many to manage effectively. It can be difficult to track performance and make adjustments.

Overlap: There might be overlap between some funds in terms of the stocks they invest in. This reduces diversification benefits.

Investment Strategy: Your portfolio has a mix of fund categories (Large & Mid Cap, Balanced Advantage, Sectoral, etc.). It's good, but we can improve it for your goals.

Here's why I can't give specific advice on your funds:

Performance: Past performance isn't a guarantee of future results. What did well yesterday might not do well tomorrow.

Your Goals: I don't know your investment goals (retirement, child's education, etc.) These influence the best investment choices.

Here are some suggestions to improve your portfolio:

Reduce the number of funds: Aim for 4-5 well-diversified funds across different market capitalizations (Large, Mid, and Small Cap).

Consider Asset Allocation: Decide on a strategic asset allocation based on your risk tolerance and goals. This helps you pick the right mix of asset classes (equity, debt).

Actively Managed Funds: Actively managed funds, where experienced professionals make investment decisions, can potentially outperform the market. Consider consulting a Certified Financial Planner (CFP) to help you choose these funds.

Benefits of a Regular Plan with a CFP:

Guidance: A CFP can analyze your financial situation and recommend a suitable investment strategy.

Portfolio Monitoring: They can help you track your investments and make adjustments as needed.

Goal Planning: They can help you set realistic financial goals and choose investments to achieve them.

Regular plans with a CFP might have slightly higher fees than direct plans, but the guidance can be valuable, especially for new investors.

Here are some additional thoughts:

Review Regularly: Meet with your CFP periodically to review your portfolio and adjust it as your life and goals evolve.

Stay Invested: Don't panic and redeem your investments during market downturns. A long-term view is important for building wealth.

By streamlining your portfolio, seeking professional help, and staying invested, you can increase your chances of achieving your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

I recommend the following fund wise allocation:

1. Franklin India ELSS tax saver: 20 K
2. PPFAS flexicap fund: 20 K
3. Kotak Emerging Opportunities Fund: 20 K
4. Mirage Asset midcap fund: 10 K
5. Nippon India Small cap fund: 10 K

Funds recommended are in the top quartile in their category.

Coming to the target of 3 Cr+ in 11 years for the achievement of which you may top-up monthly SIP each year by minimum 7% upto 11 years.

Or

Increase the flat monthly SIP amount to 1.05 L. (Invest in same proportion, as given above, for the enhanced amount)

As you get nearer to your time horizon it is important to transfer gains from equity funds to liquid or ultra short duration debt funds to protect it against market volatility.

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: Hello;

I recommend the following fund wise allocation:

1. Franklin India ELSS tax saver: 20 K
2. PPFAS flexicap fund: 20 K
3. Kotak Emerging Opportunities Fund: 20 K
4. Mirage Asset midcap fund: 10 K
5. Nippon India Small cap fund: 10 K

Funds recommended are in the top quartile in their category.

Coming to the target of 3 Cr+ in 11 years for the achievement of which you may top-up monthly SIP each year by minimum 7% upto 11 years.

Or

Increase the flat monthly SIP amount to 1.05 L. (Invest in same proportion, as given above, for the enhanced amount)

As you get nearer to your time horizon it is important to transfer gains from equity funds to liquid or ultra short duration debt funds to protect it against market volatility.

Happy Investing!!

You may follow us on X at @mars_invest for updates.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.